Faced with expanding Iranian influence, the destabilizing precedent of the Arab Spring, and a shrinking American security umbrella, Crown Princes Mohammed Bin Zayed and Mohammed Bin Salman have sought to radically transform their countries’ relationships with their neighbors across the Red Sea. In 2015, the UAE established a military base in Eritrea, from which the Saudi-Emirati alliance has waged war in Yemen—often relying on Sudanese troops and paramilitaries for ground operations. The UAE is now building a second military base in Somaliland’s port of Berbera while the Saudis are planning their own military facility in neighboring Djibouti. Both countries have also expanded their commercial ties to the Horn, and provided large cash infusions to Sudan and Ethiopia. A major goal of these efforts is to align the Horn states with the Saudi-Emirati axis against Iran, Qatar, and Turkey. To that end, Riyadh and Abu Dhabi find it useful to protect the region’s autocratic regimes, because the Gulf states’ interests don’t always align with popular opinion in the Horn. In Sudan, for example, the government has supported the Saudi-Emirati intervention in Yemen despite vocal criticism from across the Sudanese political spectrum.

The Horn’s two most important African-led bodies have quietly but persistently set themselves against the region’s emerging Gulf-led order. The African Union and an East African regional bloc known as the Intergovernmental Authority on Development, or IGAD, seek to craft a regional order that rests on the sovereignty and collective security of African states. The commitment to democracy within these institutions remains weak, as evidenced by the many authoritarian leaders in their ranks, but the organizations do embrace norms of constitutional governance and civilian supremacy in politics far more than the leaders of the Gulf states.

…. In a display of unexpected warmth, Abiy Ahmed, Ethiopia’s new prime minister, embraced Issaias Afwerki, the ageing Eritrean dictator. In the Eritrean capital, Asmara, which no Ethiopian leader had visited since the war, the two pledged to normalise relations, putting an end to one of Africa’s most bitter conflicts. “There is no border between Ethiopia and Eritrea,” Mr Abiy declared in a televised address. “Instead we have built a bridge of love.”

After a long war for independence, Eritrea seceded from Ethiopia in 1993, following the toppling of the former Marxist regime and a referendum. Ethiopia was the largest trading partner of the newly independent Eritrea. With the first gunshots, though, centuries of commerce abruptly ceased. Lucrative potash deposits straddling the border have since been neglected. Eritrea’s enormous potential for tourism—a sparkling coast and, in Asmara, one of the continent’s most beautiful cities with a wealth of Art Deco buildings—has been mostly squandered. Renewed ties with its much larger neighbour now offer Eritrea’s ailing economy prospects of revival. Ethiopia has already promised to buy a 20% stake in Eritrea’s national airline.

All upstream riparians in the Nile basin, including the Sudan share varying degrees of suspicion towards Egypt and Egyptian motives in seeking cooperative understandings. It seemingly follows that Ethiopia could mobilize these fears and occasional resentments into an alliance of upper basin riparians. The British in fact tried to do just that from 1959 to 1961, as Egypt and the Soviet Union jointly pursued the Aswan High Dam project at the expense of the upper basin (p. 86).

Why would upper basin riparians care about how Egypt uses water that flows up north?

As Waterbury explains, this is because of the international norm of Master Principle of appropriation — “whoever uses the water first thereby establishes a claim or right to it” (p. 28). Therefore, Egypt has an incentive to use as much of the Nile waters as possible in order to establish a future right to high volumes of downstream flows. Increasing domestic water consumption makes it easy for Cairo to demonstrate “appreciable harm” if any of the upper riparian states were to divert significant volumes of the Nile’s flows.

This is principle is in direct conflict with the principle of equitable use that also underpins riparian regimes (which are legion, apparently. Read the book). And that is where inter-state power politics come in.

Waterbury accurately predicted the current problem bothering Cairo:

The ultimate nightmare for Egypt would be if Ethiopia and the Sudan overcame their domestic obstacles to development and to examine coolly their shared interests in joint development of their shared watershed in the Blue Nile, Atbara, and Sobat basins. Given Ethiopian and Sudanese regional behavior in the 1990s, Egypt need not lose sleep yet (p. 149).

An obvious explanation is that Egyptian domestic political concerns make it harder for the government to sign a deal that diminishes claims to the Nile (Sisi doesn’t want to be the one that signed away water rights!) But this problem will only get worse for Egyptian elites, assuming that Egypt will get more democratic with time.

Ethiopian Prime Minister Meles Zenawi has died at the age of 57, state media say, after weeks of illness. A government spokesman said Mr Meles had died in a hospital abroad – but did not say exactly where or give details of his ailment. Speculation about his health mounted when he missed an African Union summit in Addis Ababa last month.

Mr. Zenawi is believed to have died in a Belgian hospital – the Saint-Luc University Hospital in Brussels (where he was allegedly receiving treatment for an acute case of hematologic cancer). The last time he was seen in public was on the 19th of June 2012 at the G20 summit in Mexico.

For now the leadership transition in Ethiopia, Sub-Saharan Africa’s second most populous country, appears to have gone smoothly. According to the BBC report, the deputy Premier – Hailemariam Desalegn – will take over.

Mr. Desalegn is from the south of Ethiopia, away from the political centre of gravity of the country, which for centuries has been to the north – in Tigray and Amhara dominated areas.

It is not yet clear if the smooth transition will stick. As the Economist reported a couple of weeks ago:

“power [in Ethiopia] has still rested with a clutch of Mr Meles’s comrades from his home area of Tigray in northern Ethiopia, many of them once members of a Marxist-Leninist group that used to admire Albania’s long-serving Communist leader, the late Enver Hoxha. This hard core, including the army’s chief of staff, General Samora Younis, retains a “paranoid and secretive leadership style”, according to a former American ambassador to Ethiopia, David Shinn. Were Mr Meles to leave in a hurry, relations between the young modernisers and the powerful old guard might fray.”

It is also under Meles Zenawi that Ethiopia invaded Somalia to rid it of the Islamic Courts Union (ICU) which was beginning to spread Somalia’s chaos into Ethiopia’s Ogaden region (it helped that the U.S. also wanted the ICU ousted from Mogadishu because of their alleged links of al-Qaeda).

I remain cautiously optimistic that the Ethiopian ruling elite will pull through the rocky transition period. The next elections are due in 2015. In the current parliament the ruling party, the EPRDF, and its allies control nearly all of the 547 seats.

Beyond Ethiopia’s borders, the absence of Mr. Zenawi will certainly be felt in Somalia (which is presently struggling to get on its feet after decades of total anarchy and whose government partly depends on Ethiopian troops for security) and South Sudan (where Addis Ababa has been a broker in past conflicts between Khartoum and Juba). Ethiopia’s hostile relationship with Eritrea might also experience some change, most likely for the worse as whichever faction emerges victorious in Addis engages in sabre rattling in an attempt to prove their hold on power.

The African Union elected South African Nkosazana Dlamini-Zuma to head its executive arm, the AU Commission. Ms Dlamini-Zuma is a former wife of the polygamist South African President Jacob Zuma. I hope that with Pretoria’s success in having her elected to head the AU South Africa will take a more proactive role in leading the regional organization. As I have stated before, I think the organization needs “owners” in the form of diplomatically powerful custodians. Being the region’s biggest economy, South Africa is well placed to provide strong leadership to the African Union, if it wanted to.

Still on the AU Summit, Ethiopian Prime Minister Meles Zenawi has been conspicuously absent, fueling speculation that he is critically ill. Rumors abound that Mr. Zenawi has left the country for a Belgian hospital – the Saint-Luc University Hospital in Brussels (where he is believed to be receiving treatment for an acute case of hematologic cancer). Some opposition groups have suggested that Mr. Zenawi may have died in hospital. The last time he was seen in public was on the 19th of June. Mr. Zenawi has led Ethiopia since 1991. His record has been a mixed bag of aggressive and ambitious development projects (with results, growth has averaged over 8.4% over the last ten years) and militarism and authoritarian tendencies that have seen many opposition members detained, exiled or killed.

And in Somalia, BloombergBusinessweek reports on the massive corruption in the Transitional Federal Government.

The nearly 200-page report lists numerous examples of money intended for Somalia’s Transitional Federal Government (TFG) going missing, saying that for every $10 received, $7 never made it into state coffers.

The report, written by the U.N. Monitoring Group on Somalia and Eritrea and obtained by The Associated Press Monday, says government revenues aren’t even clear: The Ministry of Finance reported revenues of $72 million in fiscal year 2011, while the accountant general reported revenues of $55 million.

The Somali Government remains an unrepresentative shell, propped up by African Union forces and barely in control anywhere outside of Mogadishu. No elections are in sight (and rightly so. I have never been a fan of rushed post-conflict elections. See Liberia circa 1997 for details), instead the UN and the AU are presiding over a process in which Somali power brokers will put together a list of electors to appoint the next parliament. The current government’s mandate expires the 20th of August (next month).

Kenya and Eritrea appear to be on a collision course. The Horn might get a little bit hotter in the next few months.

Some insights into politics and development in Nigeria. I hold the minority opinion that Nigeria might yet surprise those short selling it at the moment. The political situation is almost good enough. Remember, all you need (at least for the initial stages of growth) is predictability, not Sweden’s institutions.

AFRICOM has a blog. The posts are sporadic but it’s worth checking out once in a while.

While Eritrea has in the past been repeatedly accused of supporting Somalia’s Islamist militia Al Shabaab, a charge it strenuously denies, the current report catalogues Afewerki’s growing notoriety in the world of terrorism finance, and in particular the global web through which these funds are routed, with Kenya serving as a global transaction distribution hub.

The report details the country’s activities in funding the terror group, following the money trail from its citizens in the diaspora in Europe and North America, through Dubai and the Eritrean embassy in Nairobi, and into the hands of Al Shabaab, all the while concealed in convoluted and opaque informal financial networks.

That is The East African reporting on Eritrea’s support for armed groups in the wider eastern African region. Mr. Afewerki’s actions are a threat to regional security for the following reasons:

1. Eritrea’s (opportunistic and cynically instrumental) use of Islam as a galvanizing force (against “Christian” Ethiopia) threatens to ignite a wider regional conflict that would probably include North Sudan and Egypt. The reason this is likely is because:

(a) Remember that the use of the waters of the Nile continues to be a source of friction between Egypt and the riparian states of eastern Africa. Egypt itself has in the past been linked to armed groups in Somalia opposed to Ethiopian rule of the Ogaden region. Both countries have a history of funding rival clan militias in Somalia. In all of this the principle of my enemies’ enemies’ are my friends will most likely apply.

(b) Because of its own problems with South Sudan, North Sudan might have an interest in using Eritrea’s networks to destabilize its southern neighbor. Recently the government of South Sudan banned all people of Somali origin from entering the country by land for security reasons. Juba clearly suspects either direct or indirect links between Khartoum and the myriad armed groups in war-torn Somalia

2. Given that the groups it supports (e.g. al-Shabaab) have other enemies besides Ethiopia, President Afewerki has effectively declared war on countries like Uganda, Burundi, South Sudan and Kenya that have also either been attacked or threatened by al-Shabaab. I wouldn’t be surprised if one or two of these EAC states decided to materially support the Ethiopian side the next time Addis and Asmara fight over their barren disputed border lands.

UPDATE: The Government of South Sudan has barred people of Somali origin from entering the country by road for “security reasons.” This wrongheaded move has created an awkward situation since not all people of Somali origin are from Somalia. In Kenya, for instance, a good chunk of the long haul transport sector is run by Kenyans of Somali origin.

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The Ugandan government recently went on a $1 billion shopping spree for six fighter jets. The deal, which almost broke the bank, made a significant dent on Uganda’s forex reserves. Many, while acknowledging the risks that might have motivated the purchase, have questioned the wisdom of spending that much money on six jets.

For those not in the know, the key motivation for Museveni’s purchase was a desire to project military power in the region for two key reasons:

Firstly, in order to create a market for Ugandan light industries – cooking oil, soap, etc – Kampala has had to project military power to help in the pacification of pockets of eastern DRC and northern Uganda/South Sudan. These markets are crucial because they create jobs in Uganda, allowing Museveni some room as he continues to preside over Uganda’s decline into a dysfunctional police state.

The second reason was Museveni’s desire for military grandeur in the region. Kigali and Khartoum are not in the best of terms with Kampala. Museveni is probably suspicious of a potential Odinga presidency in Kenya. For these reasons, the Ugandan military establishment – the real rulers of Uganda – might have wanted to ensure that non of their neighbors are in a position to bully them in the near future.

While most of Museveni’s militarism is inspired by a mentality from a bygone era, I find Kampala’s fears against Khartoum as legitimate grounds for a regional defense pact. It is an open secret that Khartoum will try as much as it can to destabilize the new government of South Sudan (and by extension the wider region). And they have a few options:

They can foment civil war within South Sudan – there are a lot of disgruntled armed bands within South Sudan who might decide to take their chances with Khartoum; Remember that even Riek Machar, the current vice president of South Sudan, formed a Khartoum-backed splinter group (SPLA-Nasir) that fought Garang’ back in the early 1990s.

They can use armed groups in the wider central African region – including Kony’s LRA and the plethora of roving bandits in eastern DRC to engineer insecurity in South Sudan. Khartoum has used the LRA against SPLM in the past.

They can invade in an all out war. This option is the riskiest because of its potential to generate international opprobrium. But remember that Ethiopia and its secessionist former province Eritrea fought a bloody war that generated nothing but “stern” warnings from the UN and the wider international community. The US even armed Ethiopia because it needed Addis Ababa to fight its war in Somalia.

Lastly, they can use non-conventional tactics. Terrorism is slowly growing in the wider east African region. So far Eritrea has been the biggest state sponsor of terror in the region – mostly aimed at Ethiopia in the Ogaden, Oromo land and Somalia. The involvement of Ugandan and Burundian troops in Somalia has created even more enemies for these groups. There is no reason to believe that Khartoum would not use these same groups to destabilize South Sudan, if for nothing then as a survival tactic for a beleaguered Bashir administration that will forever be blamed for having lost the South’s oil.

Needless to say, an unstable South Sudan is bad for the region. Period.

The proliferation of small arms is already a major problem in the areas bordering the Ilemi triangle and eastern Uganda. That instead of sticks pastoralists have to roam around with AK-47’s says it all. More conflict in South Sudan will only make a really bad situation even worse. The potential for proxy wars within the region would also be an unnecessary drain on limited resources. Because of various interests in Juba, an aggression by Khartoum against South Sudan will definitely be met with reaction in one form or another from Kenya, Ethiopia and Uganda.The conflict will definitely be regionalized. Lastly, Eritrea’s bad habit of supporting terrorists should not be permitted to catch on. Khartoum must know that if it tries this dirty tactic it will be met by more than just resolutions from the AU, IGAD or the UN.

Which is why I think that the EAC should have a robust defense pact. War should have to be a last resort. But that does not mean that the East African Community should not prepare for such an eventuality, if it arise.

That way, no single country will be burdened with the task of buying all the necessary hardware needed to keep Khartoum deterred.

Such a plan would face significant challenges, of course – key among them the fact that the region’s armies are non-professionalized. A functional defense pact would require near total civilian control of the army. Only Kenya and Tanzania come close to this in the EAC. Rwanda, South Sudan and Uganda are dominated by their respective armies. Burundi can’t even win against rebels within its territory and remains a militarized tin pot dictatorship. And Ethiopia, if it were to join, is still dominated by the remnants of the rebellion that ousted Mengistu.

These challenges aside, it might be worth a try. Such a pact might even help professionalize and de-politicize the officer corp in the region’s armed forces.

UPDATE: A related article on Uganda’s influence in the soon to be independent South Sudan can be found in the New York Times.

In three days the East African Community will celebrate the independence of its next newest member. Because of SPLM connections in Kenya, among other East African nations, the Southern Sudanese economy will most likely orient itself southwards.

Kenya’s Vision 2030 development plan, for instance, will link Southern Sudan to the Indian Ocean coast via a pipeline and railway line. Oil from South Sudan is currently exported through Port Sudan, 3,000 kilometres away. The planned link to Lamu would reduce that distance to 1,700 kilometres.

For Southern Sudan, economic ties with its southern neighbors will not only grant it access to much needed capital and skilled labor but also implicitly guarantee it security against its menacing neighbor to the north.

I doubt that Kenya, Ethiopia and Uganda will sit on their hands if the north decides to bomb local offices of Equity Bank, Ethiopian Airlines or Ugandan retail outlets in Juba (Remember the “Kenyan” tanks fiasco?). It also helps that IGAD has suddenly woken up to the security challenges posed by proxy wars among its member states. Kenya’s president, and current head of IGAD, recently chastised Eritrea for its ties with militant groups in the region.

IGAD will provide yet another forum for the region to put pressure on Khartoum to honor the CPA and not resort to war.

Several Kenyan companies have already set up shop in Juba. About 70,000 Kenyans live and work in Southern Sudan. According to the Business Daily:

Although several major Kenyan companies like Equity Bank, KCB, UAP Insurance and many small enterprises operate in South Sudan, the independence declaration on July 9 is expected to trigger another wave of corporate movement there.

Bidco Refineries that has a dealership in South Sudan, for example, is expected to consider having a physical presence there, said the company’s CEO Vimal Shah in an earlier interview. Kenyan manufacturers are, however, discouraged by low consumption levels and shortage of power, water and sewerage systems.

Co-operative Bank of Kenya is also expected to start setting up its banking infrastructure with a new venture that will be 30 per cent owned by the Government of South Sudan.

The new bank is expected to benefit from government business as it will process salaries of government employees and enjoy business arising from the government’s shareholding in the venture. The peaceful aftermath of the January 9 referendum that voted for secession from the North has helped to improve the country’s risk profile.

The oil giant Shell claimed it had inserted staff into all the main ministries of the Nigerian government, giving it access to politicians’ every move in the oil-rich Niger Delta, according to a leaked US diplomatic cable.

Nice. Friedman was right. Firm’s only social responsibility should be to make profits. Forget about the population and the destroyed lives.

Also,

US diplomats fear that Kenya could erupt in violence worse than that experienced after the election in 2008 unless rampant government corruption is tackled.

America asked Uganda to let it know if its army intended to commit war crimes based on US intelligence – but did not try to prevent war crimes taking place.

Washington’s ambassador to the troubled African state of Eritrea described its president, Isaias Afwerki, as a cruel “unhinged dictator” whose regime was “one bullet away from implosion”.

Still (im)patiently waiting for the stuff on the Kenyan elections in 2007.

And lastly,

Apparently based on a conversation with Johnnie Carson, the US assistant secretary of state for African affairs, it said: “China is a very aggressive and pernicious economic competitor with no morals. China is not in Africa for altruistic reasons. China is in Africa for China primarily.”

Yeah right. Because the US involvement in Africa since the 1960s has been any different. At least the Chinese do not bother to be janus-faced about it [ok, that is a little too harsh, but you get my point].

The most interesting thing to come out of the wikileaks stuff, at least as far as eastern Africa is concerned, is the story on Kenya’s proposed strategy of dealing with the state collapse in neighboring Somalia. According to the leak, Kenyan security chiefs are considering the creation of an autonomous buffer region in Jubaland – the area of Somalia that borders Kenya – kind of like the ones in Somaliland and Puntland. The capital of the autonomous buffer region would be in Kismayu.

Kenya has a sizeable Muslim Somali population and is afraid of fundamentalist Islamism on its doorstep in a lawless Somalia. A stable buffer region in Jubaland would guard against radicalisation of Kenya’s Somali youth in the northeast, on top of checking the proliferation of small arms in the country.

Kenya also might be thinking long term. A divided Somalia guarantees less chances of success for a greater Somalia irredentist movement if peace ever descends upon the entire country.

Ethiopia is not a fun of the idea. The last thing Addis Ababa wants is an autonomous region that can fund Somali separatists in the Ogaden. The region would also have a demonstration effect on Ogadeni Ethiopians who for decades now have fought for real political and economic autonomy from Addis Ababa.

I don’t think this is a bad idea. At this point anything that would bring order to any region of Somalia is acceptable. I have argued before that the Union of Islamic Courts should have been allowed to establish order and then bought off with aid in exchange for a more sober interpretation and application of Sharia law. The whole debate about how bad they were for women’s rights was horse manure. The Saudis aren’t any better.

Regarding Ethiopia’s concerns, Meles and his men should not export their Ogadeni conflict just as much as they do not want Somali warlords to export their own civil war. The rebellions against Addis in Oromoland and the Ogaden are partly due to Zenawi’s stranglehold on power and the faux-ethnic federalism that currently exists in Ethiopia. More on this soon.

The United Nations World Food Programme (WFP) is implicated in a leaked report that suggests that corrupt officials have been diverting food aid intended for displaced Somali refugees. It is feared that al-Shabab (the Islamist insurgency group that is fighting against Somalia’s transitional government and its international backers) is benefiting from the diversion of food aid.

Diversion of food aid for other ends is not new in this region of the Continent. In the 1980s when the Ethiopian government under tin pot dictator Mengistu Haile Mariam was fighting Eritrean and Meles Zenawi-led rebels, both sides of the conflict diverted food aid and used it to purchase weapons, with disastrous consequences. The CIA seems to have forgotten about this particular case. The agency is a key nemesis of al-Shabab in Somalia.

Hong Kong police fired water cannon and volleys of tear gas to break up protesters throwing petrol bombs and bricks near the Legislative Council building and central government offices on Sunday, the latest in weeks of sometimes violent unrest.

Yemen's Iran-aligned Houthi group on Saturday attacked two plants at the heart of Saudi Arabia's oil industry in a strike that could impact about 5 million barrels per day of crude production - close to half of the kingdom's output, or 5% of global oil supply.